Federal government giving seniors one-time payment up to $500 to help with COVID-19 costs

The Government of Canada is providing seniors with a one-time payment of up to $500 to help them deal with financial challenges presented by the COVID-19 pandemic.

People in Canada receiving the federal Old Age Security (OAS) benefit will receive an extra $300, while anyone older than 65 that also receive the Guaranteed Income Supplement (GIS) will be given another $200. The government approximates that 6.7 million people will be eligible for the base benefit and 2.2 million will receive the $500 total. Payouts will be processed automatically and are not dependent on new legislation being introduced, according to Seniors Minister Deb Schulte, because they rely on existing programs.

“Canada’s seniors have shaped this country and contribute to our communities every day. They are among the most threatened by COVID-19, and we will support them and work to keep them safe,” Prime Minister Justin Trudeau said on Tuesday.

People older than 65 are eligible for OAS as long as they’ve lived in Canada for more than 10 years. Payments through the OAS pension are made monthly and are based off of how many years someone spent living in Canada after they turned 18. The maximum amount that seniors normally receive through the OAS pension is $614 per month.

In her mandate letter, Schulte was given the task of increasing the pension paid through OAS by 10 per cent for seniors older than 75.

The government is also extending payments through the seniors’ programs even if they haven’t filed their 2019 tax returns yet. Seniors have been given an extension until Oct. 1 to submit last year’s tax information.

The New Horizons for Seniors Program will also receive a $20 million top-up. Funding will be used to support organizations that offer programs to reduce isolation, help seniors maintain a social support network and contribute to their quality of life, Shulte said on Tuesday.

Schulte avoided answering a reporter’s question about whether the federal government would follow the pandemic with a national inquiry into how the problems at long-term care homes were exacerbated by COVID-19.

“Our focus right now isn’t getting all the supports that we can to the provinces and territories so that they can deal with this and keep as many our seniors safe and save lives,” Schulte said.

Trudeau also shut down a reporter’s question on Tuesday about if long-term care homes could be nationalized because of the pandemic, pointing to the province’s jurisdiction over homes. Patients at nursing homes have been disproportionately at risk to COVID-19.

There were 70,342 confirmed cases of the new coronavirus in Canada on Tuesday. Slightly less than half of all patients have recovered. 5,049 people have died in Canada after getting sick with COVID-19. The National Institute on Ageing told the Toronto Star last week that 3,436 residents and six staff members had died from the illness as of last Wednesday, when there were 4,167 deaths from the disease in the country – meaning that 82 per cent of COVID-19 deaths in Canada at that time had come in nursing homes.

More than 4 million seniors representing 85 per cent of singles and close to half of couples received the federal government’s one-time GST payout in April. Single seniors received $375 on average and couples got a payout of an average of $510, according to the Prime Minister’s Office.

Seniors have also had the minimum withdrawal of their Registered Retirement Income Funds reduced by 25 per cent this year, as a measure that the government says will help them preserve assets during the volatile market period caused by the pandemic.

People older than 65 are also eligible for the Canada Emergency Response Benefit, which is providing people out of work because of COVID-19 $2,000 every four weeks for up to 16 weeks.